Based on Table 3.1, which country or countries has an absolute advantage and a comparative advantage in shoes?
A) Mexico has an absolute and comparative advantage in shoes.
B) The United States has an absolute and comparative advantage in shoes.
C) The United States has a comparative advantage, and Mexico has an absolute advantage in shoes.
D) Mexico has a comparative advantage, and the United States has an absolute advantage in shoes.
E) There is not enough information to tell.
D
You might also like to view...
Why does the presence of imperfect information lead to inefficiency?
What will be an ideal response?
Suppose the monetary policy curve is r = 5 + 0.8?, and the current values for output and inflation are 16.8 and 2 percent, respectively. An increase in global resource prices pushes the inflation rate to 4 percent
Policy makers estimate that the monetary policy in place, responding to 4 percent inflation, will bring output down to 13.6, a decline considered excessive. Instead, they implement an autonomous easing of monetary policy to lower output from 16.8 to 16. Assuming no change in the slope of the monetary policy curve, determine the new curve.
The size of the spending multiplier depends on the level of real GDP
a. True b. False Indicate whether the statement is true or false
A recent antidumping case charged Canadian tomato producers with dumping tomatoes on the U.S. market. In order for the United States to impose antidumping duties, Canadian tomatoes must be sold at _______ than their fair value in the United States, and there must be injury to the ________ tomato industry.
a. more; U.S. b. less; U.S. c. more; Canadian d. less; Canadian